When to Convert OPC to Pvt. Ltd.?
An OPC can voluntarily convert to Pvt. Ltd. at any time. However, mandatory conversion is required when:
- Paid-up capital exceeds ₹50 Lakhs
- Average annual turnover exceeds ₹2 Crores (in immediately preceding 3 FYs)
Benefits of Conversion
Add Shareholders
Bring in partners, investors, and additional shareholders.
Raise Funding
Easier to raise VC/PE funding as Pvt. Ltd. company.
No Threshold Limits
No restrictions on capital or turnover like OPC.
Better Credibility
Pvt. Ltd. structure is more recognized by banks and investors.